An errors & omissions insurance policy is a potent instrument to mitigate financial risks that may arise from medico-legal cases.
Before availing this insurance plan, it is important for medical professionals to know why doctors should care about these. The particular policy is effective for risk management in case of claims arising in the course of discharge of duties by a medical professional. If there is medical negligence litigation, the hefty legal fees, along with other expenses, will be covered under this insurance cover.
To know the benefits of the insurance plan, and how the same can be beneficial to medical practitioners, one needs to have an understanding of the major terms under errors & omissions policy.
Major clauses under errors & omissions insurance plan
The new terms in professional liability plan coverage are conducive to protecting medical professionals against various professional risks they are susceptible to.
- Operative provision
It includes the clause that the insured medical professional will be indemnified based on contract by the insurance company against various expenses; these include defences costs and fee in litigation as well as a legal liability of paying compensation if any.
It is one of the reasons why doctors should care about a professional indemnity insurance policy.
- Insuring provision
The onus of settling the claim will be on the insuring company for the loss arising in the course of professional duty during the tenure of the insurance plan. The clause is particularly effective in case of compensation to be paid by the doctor for third-party damages.
It is one of the major risks that doctors face in the absence of professional liability insurance. However, it has to be noted that the insuring company will only settle such a claim if it is reported in writing and within the stipulated period, as mentioned in the contract.
- Authorisation provision
The insured medical practitioner authorises the insurance company to act on his/her behalf in terms of extending or accepting the claim notice of termination, payment of premium, or receiving any due premium under the errors & omissions insurance plan.
- The extended claim reporting provision
If the professional indemnity insurance policy is terminated either by the insured medical professional or the insurer, the former will be provided with a time limit – not exceeding 90 days, from the termination or expiry date of the insurance plan.
- Policy disputes provision
The policy disputes clause mentions that in the event of any dispute arising with respect to terms and conditions of the insurance plan, both the parties will be subjected to the jurisdiction of Indian courts. The resolution of disputes will be in accordance with the law of such courts.
Professional liability insurance policies are designed in such a manner that it would mitigate the financial duress that may be faced by medical professionals by way of various risks ranging from medical negligence cases to that of libel and slander or breach of confidentiality.
NBFCs such as Bajaj Finserv offer coverage of up to Rs.1 core with their Professional Indemnity Insurance plan.
The company also provides credits such as loan for doctors, which will help medical professionals personally or commercially.
The financial institution also brings pre-approved offers that simplify the application process to avail such loans. These offers are available on a host of financial products such as business loans, personal loans, and others. You can check your pre-approved offer on the official website of the company by submitting essential details like name and contact number.
Errors & omissions insurance policy has become critical for professionals, especially for medical professionals in the backdrop of increasing medical negligence litigation and enormous third-party compensation. This insurance coverage will be able to hedge the ever-increasing professional risks that doctors today stand to face. The unforeseen expense emerging from the risks can be successfully managed under this insurance cover.